A flagship report from the World Economic Forum (WEF) states that due to increasing geopolitical tensions and instability, the trend of globalization continues to ease and has reached a critical juncture. Analysts believe that the environment described by WEF's latest survey results may strengthen the role of gold as a safe haven asset and a tool for foreign exchange diversification.

The WEF Global Cooperation Barometer released this week warns that global cooperation has "stalled"

The report attributes this downward trend to the severe erosion of the "peace and security" pillar of the barometer over the past seven years. WEF analysts emphasize that the escalating geopolitical tensions and intensified competition have undermined collective security. In addition, driven by events in regions such as the Middle East, Ukraine, and Sudan, conflicts and the resulting humanitarian crises have reached record levels in the past year.

WEF's President and CEO b? This barometer was released at a time of extreme global instability and at a time when many new governments are setting agendas for this year and future terms, "said George Brende in a statement

The report emphasizes that the reduction in global cooperation has occurred at a time when it is most urgently needed.

Analysts point out that "as the basic stable cooperative order defining the post Cold War era gives way to a more decentralized pattern, solutions to urgent challenges (from climate action to technological governance) require cooperation

Despite the overall decline in globalization, the report emphasizes areas where global cooperation has made progress, such as vaccine distribution, scientific research, and renewable energy development.

Brende said, "The barometer indicates that cooperation is not only crucial for addressing key economic, environmental, and technological challenges, but is also possible in today's turbulent context

Challenges faced in revitalizing globalization

However, analysts remain skeptical about the prospects of a resurgence in globalization trends, especially as the incoming US president continues to advocate for America First policies.

On the same day as the release of the WEF report, US President elect Trump made controversial remarks at a press conference, suggesting the possibility of using economic power to annex Canada.

He said, "We are basically protecting Canada. We spend hundreds of billions of dollars every year to take care of Canada. We have lost to the trade deficit

Trump also mentioned similar strategies targeting Greenland and the Panama Canal. He said, "People really don't even know if Denmark has any legitimate rights over Greenland, but if they do, they should give it up because our national security requires it. That's for the free world, I'm talking about protecting the free world

Trump further proposed renaming the Gulf of Mexico as the 'Gulf of America'.

Gold as a safe haven asset against geopolitical instability

Craig Shapiro, macro strategist for The Bear Traps Report, wrote on social media that the world is transitioning towards a new global order.

He wrote, "The old system is fading away, and a new system will emerge - possibly more mercantilist, multilateral, and centered around gold as a neutral reserve settlement asset

Commodity analysts unanimously believe that the constantly evolving multipolar world may support gold prices in 2025.

Chantelle Schieven, research director at Capitalight Research, predicts that due to increasing geopolitical uncertainty, gold prices may surpass $3000 per ounce in the second half of 2025.

She added that the market is still evaluating Trump's policy proposals, which she believes are transactional and part of broader negotiations. She said, "Currently, we are in a 'wait-and-see' state, trying to determine the likelihood and impact of these proposals. The biggest unknown is to what extent he will actively pursue these policies

Sprott Inc.'s managing partner Ryan McIntyre also agrees with this view, stating that he is optimistic about the prospects of gold because geopolitical uncertainty is putting pressure on overvalued stock markets.

He said, "Due to historically high levels of global debt, gold remains the most attractive asset in a multipolar world. Long term geopolitical uncertainty will continue to support gold's position as a safe haven asset, more important than any short-term price fluctuations.